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The Rise of Digital Platforms – Effects on Competition

Author

Listed:
  • Vera Pirimova

    (University of National and World Economy, Sofia, Bulgaria)

  • Ivanina Mancheva

    (University of National and World Economy, Sofia, Bulgaria)

Abstract

The study focuses on multi-sided markets (platforms) as a specific materialization of competition in a digital context. We describe the determinants of the rise of platforms and their effects on competition. Stemming from digitalization, network effects, economies of scale, high sunk costs and high switching costs lead to lock-ins. This changes the nature of competition as well as some key features of value creation in traditional markets of goods and services. These challenges are considered in terms of possible regulatory solutions.

Suggested Citation

  • Vera Pirimova & Ivanina Mancheva, 2021. "The Rise of Digital Platforms – Effects on Competition," Nauchni trudove, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 95-109, July.
    • Handle: RePEc:nwe:natrud:y:2021:i:3:p:95-109
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    File URL: http://unwe-research-papers.org/bg/journalissues/article/10403
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    More about this item

    Keywords

    online platforms; network effects; digitalization; market power;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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